Today I found the hardest-working new trader on our desk  in Steve’s office, my partner, discussing how to get more out of your best trades. Steve explained the topic and remarked, “I thought you might have some ideas Bella.”

Yesterday we blogged about knowing you are in an A trade.  When Dr. Steenbarger visited our firm last year he was asked the most important attribute of a great trader.  Dr. S reponded,”The best traders know when they are right and press their advantage.”

I suggested that this new trader first determine which trades make the most sense to him, his A trades.  And then after being in such a trade he ought to rewind, replay and retrace this set up.  Go back and look at the chart for that set up.  Retrace exactly where you could have added size while controlling your risk.  Retrace where you could have taken some off.  Retrace where could you have reloaded.  Replay holding for enough of the move.

So with IBM today there was:
a) the starter position at 123.70 after a shallow pullback from 124
b) the buy into the pullback after it broke out above 124.25
c) and the aggressive add as it held above 124.50
Where you buy is not as important as rewinding, replaying and retracing where to add that makes the most sense to you.

Spend time mastering these set ups that make the most sense to you.  If Kobe knows in the next series he will be given three pointers off the pick-and-roll, then he will focus on preparing for these shots.  If you find a set up that you love and do not get enough out of it, go back and paper trade it again.  Of course the results won’t count but you will brand a better trading technique in your head.